Manufacturing in Mexico has become more attractive to industry leaders from the U.S., Canada and around the world, especially as wages continue to rise and (skilled) labor shortages plague developed countries. Moving manufacturing and/or assembly operations to Mexico offers companies easy access to the United States and Canadian markets, often improving lead-times and enabling just-in-time manufacturing strategies. While there are a number of benefits for companies to move their manufacturing to Mexico, low-cost labor is one of Mexico’s most appealing advantages.
Some manufacturers choose to keep production outside of Mexico, which can be anywhere in the world, and utilize Mexico’s border region to complete final assembly. Assembly in Mexico has grown in popularity over the past decade, especially as shipping costs from Asia and U.S. wages have continued to rise. The industry that has grown the fastest, and benefited the most from assembly in Mexico, is the automotive industry. Companies like Toyota, Mercedes, Honda, Ford, Mazda, Volkswagen and BMW have all opened automotive assembly plants in Mexico.
Assembly in Mexico is not limited to just the automotive industry, many other industries, such as medical devices, electronics, consumer products and aerospace are expanding at rapid rates in Mexico. Choosing to move assembly to Mexico allows companies to save on labor but remain in close proximity to the United States and Canadian markets.
NAPS is a premium administration and compliance management firm who specializes in helping companies from around the world expand their manufacturing and assembly plants to Mexico. With over 27 years of experience, NAPS is an expert in the maquiladora industry and understanding the IMMEX program.
If you wish to learn more about NAPS and assembly in Mexico, contact us at (858) 251-9898